More than half of insurance brokers (56%) are now actively recommending or implementing an Individual Coverage Health Reimbursement Arrangement (ICHRA), while the number of brokers who have moved at least one client to ICHRA has grown from 15% in 2024 to 37% in 2026.
Those are two key takeaways from "The State of ICHRA 2026" report, published by ICHRA administrator SureCo and sponsored by healthcare technology company Oscar Health.
Considered the most comprehensive longitudinal study of the ICHRA market, the report draws on three consecutive years of nationwide survey data from 1,500 human resources professionals, employees, and benefits consultants. According to SureCo, the report also marks 2026 as the year ICHRA crossed from early-adopter experiment to mainstream benefits strategy.
"ICHRA is no longer confined to edge cases or moments of disruption," SureCo CEO Matthew Kim said. "It is increasingly being evaluated as part of the standard renewal process and is discussed earlier, modeled more rigorously, and positioned as a viable path forward, not just a fallback. What changed in 2026 is not just awareness or adoption, it's how the entire market is behaving around it."
The report traces ICHRA's rise directly to a traditional employer-sponsored insurance market under extraordinary strain. Employer-sponsored family premiums reached $26,993 in 2026, a 26% increase over five years that outpaces both inflation and wage growth, according to SureCo.
Nearly 90% of surveyed employers report a rate increase this year, with one in three absorbing a double-digit hike. More than half of senior benefits decision-makers (52%) say medical costs keep them up at night, and 94% have explored alternative cost-containment strategies. ICHRA proved to be among the most effective levers available, the company adds — even in a year when individual market rates spiked an average of 15% following the expiration of enhanced Affordable Care Act premium tax credits.
Here are other findings from the report:
- One in three mid-size employers absorbed double-digit rate increases at the 2026 renewal, and 79% said the increase was still a surprise.
- Most brokers (92%) who moved clients to an ICHRA saw their compensation increase, which directly contradicts years of displacement fears in the industry, according to SureCo.
- More than 91% of employers who adopted ICHRA said it was the right move, and brokers report average client savings of approximately 15.5% after switching.
"The structural case for ICHRA has been made," Kim said. "What determines who wins the next phase is execution; specifically, the quality of education and support employers and administrators deliver to employees. As employers shift away from selecting a single plan toward enabling employee choice, success will depend on education, decision support, and a redefinition of the employer's role in benefits."
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